Tag Archives: Centamin

More XE underground loaders on the way, Caterpillar says

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Having additional success selling underground loaders to mining customers, Caterpillar is gearing up to release more machines that leverage that same “architecture” technology as the Cat® R2900 XE diesel-electric LHD, Mike Berry, Vice President and General Manager of Load and Haul for Caterpillar, says.

The diesel-electric R2900 XE is built on the R2900G’s platform, Caterpillar’s most popular underground loader. It features optimised lift arm and component geometry plus load-sensing hydraulics to improve breakout force by 35% over the R2900G, Caterpillar states.

The 18.5-t payload R2900 XE features a switch reluctance electric drive system alongside a Cat C15 diesel engine, which offers up to 335 kW of power. Caterpillar says the machine comes with about 30% increased fuel efficiency compared with the R2900G, with its lower engine revolutions per minute resulting in reduced fuel burn, heat, noise, vibration and exhaust emissions.

These traits have, so far, gone down well. In Australia, there are units at mines owned by Gold Fields, Westgold Resources and MMG. Newmont recently confirmed an order for nine R2900 XEs to the Subika gold mine, in Ghana, while Centamin also added at least one of these LHDs to its underground fleet at Sukari, in Egypt. In Canada, Alamos Gold recently purchased two of these machines for its Young-Davidson mine, while Cementation Americas added the diesel-electric machine to its roster, deploying it at New Gold’s Rainy River project in Ontario, Canada.

Speaking to IM at MINExpo 2024, in Las Vegas, in September, Berry said that the company planned to build on this momentum with more models set to join the platform.

“Similar to rolling out this technology from the surface with the 988 XE wheel loader to this machine [the R2900 XE], yes, we plan to take that technology up and down the underground loader product line,” he said.

Berry’s colleague, Paul Bitter, Product Value Stream Manager at Caterpillar, said the architecture of the XE platform – which also includes a battery-electric loader in the form of the R1700 XE – leaves a “great degree of freedom from a design perspective both for hauling and loading”.

He added: “We see it as platform for loaders and trucks, where, because of the electric drive, you can change power source. This means you can have a diesel machine, a hybrid machine or a fully electric machine.”

The most likely haulage and loading candidates for the ‘XE treatment’ are machines that currently only come in diesel form, have not recently been updated and have large populations out in the field.

On the theme of hybridisation, Berry said the company had no plans to combine the electric drivetrain with a small diesel energy and an on-board energy storage element for load and haul equipment. He and colleague Thad Litkenhus, Director of Product Management at Caterpillar, did raise the prospect of a form of the Dynamic Energy Transfer (DET) solution currently equipped for surface haul trucks being converted for underground use, however.

Designed to both transfer energy to large mining trucks, as well as charge a machine’s batteries while operating with increased speed on grade, the system “provides the industry with options to support both near-term and long-term sustainability strategies”, Caterpillar says.

Litkenhus added: “We define hybrid as having multiple energy sources and, if you think about the fundamental notion of a DET system, that is effectively a hybridisation of your machine to bring more energy to the machine. It just happens to be an off-board one.

“We actually think such a combination could provide the hybrid element that diversifies the power source without any drawbacks that come with having it all happen on board the machine.”

AngloGold Ashanti aims for 3 Moz/y status with Centamin deal

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The boards of AngloGold Ashanti and Centamin have agreed the terms of a recommended acquisition of Centamin in a deal that values the company at $2.5 billion.

Centamin’s flagship asset is the Sukari gold mine, which is Egypt’s largest and first modern gold mine, as well as one of the world’s largest producing mines. Since production began in 2009, Sukari has produced over 5.9 Moz of gold.

The announcement came on the same day Centamin announced a trading update for the two months ending August 31, 2024, which outlined production of 93,278 oz of gold at an all-in sustaining cost (AISC) of $1,290/oz sold. This production came from both open-pit and underground sources at Sukari.

Under the terms of the transaction, Centamin shareholders will be entitled to receive for each Centamin share 0.06983 New AngloGold Ashanti Shares; and $0.125 in cash. The terms of the transaction value each Centamin share at £1.63 based on the closing price of $28.80 per AngloGold Ashanti share and a £:$ exchange rate of £1:$1.3080 on September 9, 2024. This represents a premium of approximately 36.7% to the Centamin closing price of £1.20 per Centamin share on September 9.

Immediately following completion, it is expected that AngloGold Ashanti shareholders will own approximately 83.6% and Centamin shareholders will own approximately 16.4% of AngloGold Ashanti’s enlarged issued share capital.

The addition of Sukari immediately increases AngloGold Ashanti’s annual gold production by circa-450,000 oz to over 3 Moz for the 12 months ended December 31, 2023, with an immediate reduction to combined unit total cash costs and AISC.

Alberto Calderon, CEO of AngloGold Ashanti, said: “We are delighted to be announcing today’s transaction, which will add a Tier 1 asset to our portfolio. The transaction is free cash flow accretive in the first full year of production and net asset value accretive from day one; it will also offer additional upsides as we leverage our corporate infrastructure and our core competencies in exploration, operations and asset optimisation. We will build on the good work by the Centamin team to realise the significant upside in Centamin.”

James Rutherford, the Chair of Centamin, added: “This transaction is an endorsement of Centamin’s achievement in re-establishing Sukari as a world-class operation and occurs as the Egyptian Government has taken important steps to attract foreign investment to develop the country’s significant geological potential.”

Should all approvals for the friendly acquisition go as planned, the transaction could become effective before the end of the year.

Centamin-Sukari

Capital in line for another five years of drilling at Centamin’s Sukari

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Capital has been awarded a letter of intent related to a five-year extension to its open-pit drilling services contract at Centamin’s Sukari gold mine in Egypt, with the contractor potentially extending its work there through to the end of 2029.

Subject to conclusion of the definitive drilling services agreement, which will include both blasthole and grade control drilling, the contract will mean Capital has been on site for 25 years when concluding its services. The contract would begin on January 1, 2025.

Back in 2020, Capital entered a conditional open-pit waste mining services contract with Sukari Gold Mines and expanded and extended its existing drilling contract with Sukari, effective January 1, 2021. Collectively, these contracts were anticipated to deliver incremental revenues of $235-260 million over a four-year period, representing the largest award of new business in the company’s history.

In the company’s Q4 2023 trading update released today, Capital noted that the Sukari gold mine waste mining contract saw consistent operations through the three-month period.

Epiroc partners with Capital on SmartROC D65 battery-electric drill trial at Sukari

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Epiroc has partnered up with mining services company Capital Limited to field test the SmartROC D65 BE, a battery-electric surface drill rig for the mining and construction industry.

The battery-electric version of the SmartROC D65 surface drill rig will be tested at Capital Limited’s Sukari operation, in Egypt (owned by Centamin) during 2024. This mine already has a broad fleet of Epiroc drill rigs, according to the OEM, with Capital carrying out an earthmoving contract involving load, haul and associated drilling services.

Hakan Aytekin, Vice President, Epiroc Surface division, said: “This field test is an important step in our drive towards emission-free surface drill rigs. Capital Limited is always pushing the boundaries with new technologies, and that makes them an ideal partner for this field test.”

The field test is a major step in the mining service provider’s emission reduction and decarbonisation pathway, also representing its pledge to continue to provide a premium service to its clients, it says.

Peter Stokes, Chief Executive Officer, Capital Limited, said: “We are excited to be at the forefront of the transformation alongside Epiroc, bringing innovative electric drill rigs both to our fleet and to the broader market.

“Epiroc brings the supply of top-quality equipment, strong aftermarket support and competitive OEM financing options. Our close partnership ensures that we are appropriately prepared for the demand ahead of us.”

The autonomous SmartROC D65 MKII for production drilling applications became commercially available last year following testing in Australia, however this is the first public mention of a battery-electric version of the surface drill rig.

Epiroc has sustainability goals for 2030, which include halving the CO2 emissions from both operations and from sold products. The aim is to offer a full range of underground equipment in emission-free versions by 2025, and surface equipment by 2030.

Centamin-Sukari

Centamin to boost Sukari underground fleet with Cat, Sandvik, Normet and Volvo units

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The transformation of Centamin’s Sukari underground mining operations looks set to continue, with the company having committed some $16 million of capital towards an underground fleet expansion in 2024 and 2025 as part of a push towards increasing mining rates.

Centamin issued a new life of mine plan for the asset in Egypt earlier this month, saying the plan would deliver long-term increased gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions, according to owner Centamin.

The underground operation, which the company transitioned to owner-operator status last year, is set to become a bigger contributor to the overall operation in future years. This will see underground output rise from 800,000 t/y in its 2022 financial year to 1.4 Mt/y.

This is a shade under the optimal mining rate of 1.5 Mt/y that came out of an underground expansion study completed in the December quarter of 2022, but Centamin said full engineering of this plan had provided opportunities to simplify the mine plan by removing the requirement to expand production by developing underground portals in the open pit, and therefore further reducing the delivery risk. Not only did this reduce the complexity of a potential expansion, it also brought the capital cost down to $16 million, from the $25-35 million previously mooted.

This capital will be deployed on a new equipment fleet for the operation, which includes three 63-t payload Caterpillar AD63 trucks, three 18.5-t payload Caterpillar R2900 XE diesel-electric loaders, one Sandvik DD421 face drill, two Sandvik DL421 longhole drills, one Normet Charmec emulsion charger, a Normet Spraymec concrete sprayer, two Normet Utimec material transporters and a Volvo L120F integrated tool carrier.

Earlier this year, a spokesperson for Centamin told IM that the company was assessing a staged approach from conventional diesel units to hybrid diesel-electric units in the interim at Sukari, with plans to move to full battery-operated loading and haulage units over the longer term.

The Caterpillar 2900 XE offers such an interim step, being a loader that features both a diesel engine and a switch reluctance electric drive system.

Centamin to reestablish Sukari as tier one asset with new life of mine plan

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A new life of mine plan for the Sukari gold mine in Egypt will deliver long-term increased gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions, according to owner Centamin.

The company announced the new plan today, flagging average gold production from Sukari of 506,000 oz/y for the next nine years (2024-2032); and 475,000 oz/y for life of mine (2024–2034), reflecting a 5% increase in life of mine gold production compared to 2022 (441,000 oz).

The main contributors to this increase was an improved open-pit schedule, which included a 40% improvement to the life of mine strip ratio (6.5 times) compared to full year 2022 (10.8 times); an increased underground schedule, including a 75% increase in average life of mine ore mining rates (1.4 Mt/y) compared to FY22 (800,000 t); and the integration of a gold gravity circuit to the processing plant, driving a 2% increase in life of mine gold recoveries (89.8%) compared to FY22 (88.2%).

When it comes to the cost and emissions outlook, Centamin flagged connection to the Egyptian national grid, which would deliver an estimated $41 million of annual cost savings based on current diesel prices. The company also flagged the potential for increasing the capacity of its existing solar power plant, going from the existing 30 MW to 45-50 MW.

The optimisation of the open pit involves several parts – the aforementioned strip ratio changes, deferred processing of stockpiles and an optimised fleet strategy. The latter will see Centamin purchase an additional five trucks in 2024 to support the life of mine plan, at an approximate cost of $13 million taking the Sukari fleet capacity from some 90 Mt/y to 110 Mt/y.

The gold gravity circuit, meanwhile, will be added to the processing facility to improve the recovery of the coarse gold found in the higher grade ore from both the underground and open pit. Construction of this is expected to be completed in the first half of 2025 for an estimated capital cost of up to $20 million.

Centamin also mentioned further upside opportunities to this life of mine plan, including an expansion of dump leach operations, further open pit and plant optimisation, and resource and reserve growth.

Martin Horgan, CEO, said: “Today’s new life of mine plan firmly reestablishes Sukari as a global tier one gold asset, with long-term production above 500,000 oz per annum at all-in sustaining costs below $1,000/oz, underscoring our dedication to maximising free cash flow generation. This plan is not only a substantial improvement on what was previously published but, importantly, it incorporates significantly lower operational risk and delivers improved carbon abatement.

“This revised plan underpins our strategy to maximise the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns.”

Centamin weighs up use of hybrid diesel-electric units for Sukari Underground

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It has been all change underground at Sukari for Centamin, with a switch to the owner-operator model – from contractor-led operations – likely to be followed by a transition towards an electric fleet at the gold operation in Egypt.

Having successfully grown the underground reserves by 200% in 2021, extending the life of mine in the process, the company made the decision to make the owner-operator switch last year. This move, it says, delivered cost savings and increased mining flexibility. The company went on to produce just over 440,000 oz of gold from the combined open-pit and underground operation in 2022.

Ahead of this change a detailed study on the underground operation was completed. This included assessing the benefits and limitations of using battery-operated equipment within Sukari Underground, according to a company spokesperson.

Within the underground operation, Centamin currently operates 15-t-payload LHDs and 63-t-payload trucks. These, the company says, are the predominant source of heat and diesel particulate matter.

The spokesperson told IM: “At the time [of the study], proven battery-operated equipment commercially available ranged from comparable 14-15 t loaders and smaller 42 t-50 t haulage trucks. As such, we are assessing a staged approach from conventional diesel units to hybrid diesel-electric units in the interim and then to full battery-operated loading and haulage units.”

The basis for this staged approach was driven by technology (availability and advancements), location (country and existing infrastructure), and timing (lead times, technology, infrastructure, current fleet life and underground resource expansion potential), according to the spokesperson.

“Discussions with OEMs are ongoing, not just on the fleet electrification but also to understand the future pipeline of decarbonisation technology, as this continues to be at the forefront of our operating philosophy,” the spokesperson concluded.

JUWI commissions ‘world’s largest’ solar hybrid project at Egyptian mine site

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JUWI says it has commissioned the world’s largest solar hybrid project at Centamin’s Sukari mine in Egypt, helping the gold miner save more than 20 million litres of diesel a year.

The system consists of a 36 MW solar farm and a 7.5 MW battery-energy storage system, which have been integrated into the existing diesel power station at the operation. This will provide savings of up to 70,000 liters of diesel per day, according to JUWI, resulting in an average reduction in diesel consumption of 22 million liters per year.

The system demonstrates the key role of renewable energies in decarbonising the resource sector and already delivers savings ahead of expectations, according to JUWI.

Centamin noted in October that it was in the final stages of commissioning the solar plant at the operation.

The solar system designed by JUWI has maximised the generation with bifacial solar photovoltaic modules and a single axis tracking system, taking advantage of the high irradiance on site. JUWI Hybrid IQ micro-grid technology enables the integration of the solar and battery system into the existing off-grid network and supports the operation of the existing power station, it says.

The additional benefits of the hybrid power solution at Sukari, according to JUWI, include lowering the site’s carbon emissions by an estimated 60,000 t CO2/y and a subsequent reduction in the volume of diesel trucked to the site, plus a reduction in operating costs

Stephan Hansen, COO and Managing Director of JUWI,said: “We are delighted to have been able to deliver this flagship project to Centamin and, furthermore, to have been able to demonstrate the vital role that dependable solar, wind and battery solutions can already play in the transformation of the resource sector on the de-carbonisation pathway.”

JUWI has already achieved success for mining clients globally with the world’s first utility scale solar battery hybrid project at the DeGrussa Copper mine in Australia. This was followed by Agnew Gold (Australia) in 2019 and another six hybrid projects in Australia and Africa for Tier 1 and Mid Tier miners: Esperance, Pan African Resources, Jacinth Ambrosia, Jabiru, Weipa and Gruyere.

Centamin’s Sukari solar power plant performing ahead of expectations

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Centamin says the solar plant at its Sukari gold mine, in Egypt, has entered the final stages of commissioning and is delivering savings ahead of expectations.

Furthermore, it says continued progress has been made to assess the opportunity to use Egyptian grid power at Sukari.

The solar plant, which is made up of a 36 MW solar farm and 7.5 MW battery–energy storage system, has been consistently delivering 36 MW DC, converting to 30 MW AC of power, since early September, the company said. This reduction in exposure to volatile fuel pricing with commissioning is saving the company up to 70,000 litres per day of diesel and averaging a reduction in diesel consumption of 22 million litres per year, according to Centamin.

Based on current diesel prices, this means the plant has the potential to provide annual cost savings of $20 million, alongside an expected reduction in Scope 1 greenhouse gas (GHG) emissions of 60,000 t/y CO2 equivalent and a subsequent reduction in volume of diesel trucked to site.

Full commissioning of the solar plant is expected this quarter, the company added.

Centamin previously awarded the engineering, procurement and construction contracts for the 36 MW solar farm and 7.5 MW battery–energy storage system at Sukari to juwi AG and Giza Systems. juwi was contracted to design, supply and integrate the Sukari solar and battery plant into the current diesel power plant, while Giza Systems was contracted to install the Sukari solar plant. To maximise the total energy generation, the project is using bifacial solar photovoltaic modules and single axis tracking. juwi Hybrid IQ microgrid technology will enable the integration of the solar and battery system into the existing off–grid network and support the operation of the existing power station, according to the company.

On top of the solar plant news, Centamin revealed it is actively engaged with government and independent power providers to further reduce its reliance on diesel at Sukari. Its initial proposals to supply 30–50 MW AC of grid power to Sukari have been received and an internal evaluation is underway for potential integration from 2024, it said.

Fifty megawatts of AC grid power supply creates the potential to fully displace the use of diesel for power generation at Sukari, Centamin said. The minimum 30 MW AC of grid power, combined with the existing 30 MW AC of solar power, creates the potential to operate during daylight hours without using any diesel power generation and substantially offsetting diesel consumption during night time hours, it said.

The Egyptian grid power is generated from natural gas and a mix of renewables, such as hydro, solar and wind, creating the opportunity to further reduce Sukari’s GHG emissions. Further, the Egyptian industrial grid tariffs are significantly cheaper than the cost of power
generation using diesel fuel, Centamin said.

Martin Horgan, CEO of Centamin, said: “Delivery of this critical project is instrumental to our ongoing commitment to reduce our reliance on diesel fuel, minimise greenhouse gas emissions and realising material cost savings. The solar plant and potential to integrate grid power will contribute materially to our environmental stewardship philosophy and our strategic objective of maximising returns for all stakeholders.”

Centamin working with VR Steel, Real Mining and Aresco on truck tray rollout at Sukari

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Centamin’s Sukari gold mine in Egypt is in the process of upgrading its fleet of Caterpillar 785C haul trucks with “lightweight truck trays” designed by VR Steel and fabricated by Egypt-based Aresco.

In 2020, the miner trialled the use of these high production trays, which demonstrated a 10% gain in truck productivity through larger payload and faster cycle time. This led to a decision for a broader roll-out in 2021 across the haul fleet, Centamin said in its 2020 sustainability report.

The introduction of these trays, designed so the floor can be replaced for extended overall service life, are part of the company’s plans to improve cycle loading times and truck/loader matching at the gold operation. They also bring sustainability benefits to the operation given they reduce the truck body weight, increase the payload and improve fuel and tyre efficiency.

Centamin, in the 2020 sustainability report, confirmed it had placed an order for the local fabrication of 44 high production trays to fit the haul fleet in accordance with OEM specifications.